British Columbia is taking steps to address housing challenges by expanding its speculation and vacancy tax to include 13 more communities. The goal is to increase affordable housing options in response to the deepening housing crisis.
Expanding Tax Reach: New Communities in 2024
Starting in 2024, property owners in communities like Kamloops, Salmon Arm, Vernon, and others in the Thompson-Okanagan region, as well as Courtenay, Comox, and others on Vancouver Island, will face the speculation and vacancy tax. Owners must file declarations in January 2025 based on their property use in the preceding year.
Impact Evaluation: Expert Views and Government’s Stance
Experts, like Brendon Ogmundson from the BC Real Estate Association, question the tax’s impact on affordability. Despite the government’s belief, Ogmundson suggests it might not significantly affect affordability. Since 2018, the tax has generated $313 million, reinvested in affordable housing across 59 jurisdictions.
Conclusion: Balancing the Housing Market
With this expansion, the government aims to balance the housing market dynamics and promote responsible property use. Property owners in the new areas have a year before the declaration date to take steps to avoid the tax, which applies to less than 1% of residential property owners. Exemptions exist for properties occupied for at least six months by owners or long-term tenants, certain life events, and properties in resort municipalities, on Indigenous lands, or accessible only by air or water. Tax rates are 0.5% for Canadian nationals and 2% for foreign property holders.